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FLORIDA POWER CORPORATION RECEIVES 9 PERCENT BASE RATE INCREASE

 FLORIDA POWER CORPORATION RECEIVES 9 PERCENT BASE RATE INCREASE
 ST. PETERSBURG, Fla., Sept. 23 /PRNewswire/ -- The Florida Public Service Commission (PSC) approved a 9 percent base rate increase today for Florida Power Corporation, the first rate increase for the investor- owned utility in eight years. The increase will be phased in with incremental adjustments this November and in April and November 1993.
 Florida Power had asked the PSC for a $145.9 million rate increase. The PSC approved a rate increase of approximately $86 million.
 This week, state regulators decided to lower the utility's requested cost of capital for equity and debt, which reduced Florida Power's revenue request by approximately $41 million. The commission's decision to lower the cost of capital represents the largest component cut from the utility's request.
 In April, the PSC approved a $31.2-million interim increase, pending final approval of Florida Power's rate increase request. On Tuesday, the commission postponed a decision on the utility's interim request until early next week.
 The PSC set new rates that allow Florida Power to earn a regulatory return on equity (ROE) of 12 percent and a new allowed ROE range between 11 and 13 percent. Although Florida Power was previously allowed to earn an ROE between 12.6 and 13.6 percent, it is currently earning a regulatory ROE of about 10 percent.
 How the rate increase will also be divided among Florida Power's customers will be decided by the PSC next week.
 Even with the increase, Florida Power's residential rate will remain extremely competitive, ranking among the lowest of the investor-owned utilities in Florida.
 Florida Power is the principal subsidiary of St. Petersburg-based Florida Progress Corporation (NYSE: FPC) and serves 1.2 million customers in central and northern Florida.
 -0- 9/23/92
 /CONTACT: Will Rodgers, 813-866-4782, Bill Warren, 407-646-8266, Beth Pittenger, 407-646-8263, or Mark Jacobs, 904-563-4489, all of Florida Power Corporation/
 (FPC) CO: Florida Power Corporation; Florida Public Service Commission ST: Florida IN: UTI SU:


JB-AW -- FL006 -- 2779 09/23/92 16:04 EDT
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Publication:PR Newswire
Date:Sep 23, 1992
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